Praxair beats street, but shares back off highs

Published 8:35 pm, Wednesday, April 27, 2011

Danbury-based Praxair Inc.'s shares backed off record highs Wednesday, when the global industrial gas provider reported net income was up 17 percent in the first quarter.

Praxair shares had set a 52-week high in three consecutive trading sessions until Wednesday, when they fell $2.02 to close at $106.10. On Tuesday, Praxair shares closed at $108.12, a 52-week high.

The company reported net income for the first quarter of 2011 grew to $398 million, or $1.29 per share, from $340 million, or $1.09 a share, in the first quarter of 2010.

FactSet Research said the consensus among analysts was an EPS of $1.26 for the quarter.

Paul Schatz, president of Woodbridge-based financial advisory Heritage Capital, said this kind of move has been a trend this earnings season.

"You have run-ups into earnings and earnings have been good, yet stocks have sold off," Schatz said, adding the companies have to really blow away estimates and ramp up guidance to see further increases.

"The stocks are just due for a rest," he said.

Praxair Chairman and Chief Executive Officer Steve Angle credited much of the growth in the quarter to South American and Asian economic expansion and a steady recovery in the U.S.

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The company said North American sales climbed 8 percent to $1.33 billion in the first quarter, while South American sales were up 22 percent to $558 million, with lots of activity in the Brazilian manufacturing sector. Sales in Asia jumped 20 percent to $310 million, while European revenue gained 4 percent to $343 million.